What do mortgage consultants do and why do they matter to mortgage brokers?

Even as an independent mortgage broker, you do not have to do everything alone. One of the many resources you can use to your benefit is a mortgage consultant. Mortgage consultants or loan officers are frequently hired by mortgage brokers. These professionals help you find new clients and advise your clients to choose mortgages and help with the paperwork.                     

Mortgage consultants, also known as home loan consultants, mortgage loan originators, loan officers, and mortgage planners, are better equipped with time and energy to find new clients, allowing you to focus your efforts on your main responsibilities.

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What does a mortgage consultant do?

Mortgage consultants work with mortgage brokers like you as well as assist people in filling out mortgage applications. As such, they can help both brokers and your clients.

The leading role of a mortgage consultant is to help people find the ideal mortgage for their situation. Not only do they spend some time dealing directly with clients, but they also spend plenty of time talking to brokers, lenders, estate agents, and other players in the mortgage industry. When with clients, loan officers typically start by ensuring their clients understand the types of mortgage, repayments, and other aspects of the mortgage. As part of this, they have to be updated with the latest legislation changes and mortgage products. 

Mortgage consultants can be self-employed, or they can work for banks, lenders, or mortgage brokers. If they work for lenders or banks, they may have a small conflict of interest as there may be sales goals that they have to meet or other incentives that conflict with the borrower’s best interest.

Education and training

To become a loan officer, mortgage consultants have to complete 20 hours of coursework. In the case of those who want to specialize in commercial mortgages, it is common to have an undergrad degree in finance or economics as this helps them analyze the financial standing of the business.

Mortgage consultants must also be licensed by the Nationwide Mortgage Licensing System and registry, which requires 20 hours of coursework on topics such as ethics, federal mortgaging regulations, and non-traditional mortgage situations. They also need to pass the licensing exam. 

There is also an optional qualification as a certified mortgage consultant, which is the highest certification level. It indicates 100 qualifying points and five years of work experience.

What mortgage consultants do for mortgage brokers. 

When working for mortgage brokers or independently, loan officers will acquire clients by offering their services. As the mortgage broker, you would be able to add value to your clients by ensuring they understand everything and giving them the confidence that someone, i.E., The mortgage consultant, is working hard to find the right mortgage.

There is also a natural opportunity for business partnerships between independent mortgage consultants and independent mortgage brokers. Both professionals have the goal of finding the ideal mortgage for their clients and connecting borrowers and lenders. They simply go about this in slightly different ways. As such, they can work together to fill in the gaps from each other and  find new clients.

If you forge a partnership with mortgage consultants, you can set up a system where they bring you clients, and in return, you suggest their services. You can also directly hire an independent mortgage consultant to assist you or find clients for you, taking advantage of the consultant’s customer service skills.

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What do mortgage consultants make? Major trends influencing mortgage consultants.

A mortgage consultant’s average salary varies based on the source you look at, but it frequently consists of base pay plus commissions and potential bonuses. The average salary for a loan officer in the united states is $38,794, according to Payscale, $24,764, according to Glassdoor, or $61,548, according to Zip Recruiter. Glassdoor also indicates an average salary of $13/hour for home mortgage consultants and $15 for loan officers. This is a great deal of variation, largely due to commissions.

What mortgage brokers should pay mortgage consultants. 

As a mortgage broker hiring a mortgage consultant, you will likely pay them a commission. You can negotiate with them on the commission, but the standard is about 1% of the loan amount. There are some arguments (from the buyer’s perspective) that this is too high, considering that some loan officers have other interests, such as those of a company. However, when working with an independent mortgage consultant, this is a fair price that represents your client’s best interest. The loan officer will not have to push sales to meet unrealistic goals set by their employer as there is no employer. 

How do I find a mortgage consultant? The individual pieces of a mortgage consultant. 

You can find a mortgage consultant via the methods that you would find anyone else to work with. You can use techniques such as online searches, networking, recommendations, and viewing advertisements. The more important factor is that you need to find a mortgage consultant who is best suited to bring you more business. 

Avoid those who work for big companies. 

Your best option would be to go for an independent mortgage consultant or find one who will work exclusively for your small mortgage brokerage. If you were to find one who works for a large lending company or brokerage, they would not have your goals in mind. Their primary objective would be to bring sales to their company, not you. 

Look at experience.

 One of the best ways to tell if a mortgage consultant will likely bring you, new clients is to look at their experience. The more experience they have, the better they are at signing up new customers. They will be more familiar with what potential clients want and use that knowledge to your advantage. 

Their personality and customer service skills. 

Customer service skills are an essential factor when it comes to mortgage consultants, as one of their primary goals is to make clients feel comfortable working with them. You are much more likely to succeed with a mortgage consultant who has strong customer service skills. You can check this based on experience, recommendations, and their interactions with you.

What is the difference between a mortgage consultant/loan officer and a mortgage broker?

Some mortgage brokers are initially unsure about working with a mortgage consultant to bring in more clients as the two jobs have some overlap in roles. 

As a mortgage broker, you connect borrowers and lenders. You help borrowers choose the right loan, compare loans for them, and assist with loan processing, including checking appraisals, credit, and employment.

Loan officers or mortgage consultants perform a subset of these duties, including finding clients and helping them learn how to choose the right mortgage. They also help borrowers fill out their loan applications. You provide more specific advice as a mortgage broker than a consultant would.

 Another important distinction is that loan officers commonly work for a specific bank or lender. In these cases, they will typically work for the best interest of that lender. There are also many mortgage brokers who work directly for lenders. 

As an independent mortgage broker, you would want to work with an independent mortgage consultant. That way, they will help you and your clients with your best interest in mind instead of balancing the bank’s interest or lender with what works for the client. 

Conclusion – why mortgage brokers should care about mortgage consultants.

While you will have to spend money when hiring a mortgage consultant, it will be a wise investment in your business as they will bring in more clients than you would be able to find alone. The investment will be worthwhile in the long run. Remember that mortgage consultants typically have excellent customer service skills, which help bring in more customers for you.

If you currently do not have the budget to hire a mortgage consultant, you can also use other methods to attract clients. Podium’s Webchat, for example, lets you convert online traffic into leads and then clients via text messages. You can even get the Webchat feature with Podium’s 14-day free trial.

Elizabeth Gallagher
Elizabeth Gallagher Real Estate, Legal & Financial Services Account Executive

Elizabeth Gallagher is a real estate and legal professional at Podium, the premier messaging platform that connects local businesses with their customers.

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